According to Gaebler.com, Resources for Entrepreneurs, candy stores generate around $20 billion annually. If you're thinking about getting your share of the market, or if you have a recipe for fudge that will drive customers wild, there are several steps to follow to open a fudge store. It can be challenging to start a new business, but if you have a good product and a solid business plan, chances are your fudge shop will be a sweet success.

Determine whether you will need financing for the fudge business. If so, approach a local lending institution, preferably one backed by the Small Business Administration. Make sure you have a solid business plan before seeking a loan. Hire someone to help you with this, take a class or research how to do it yourself. If traditional funding isn't a possibility, look to friends, family or private investors to generate the revenue needed for your business.

Check with your city, county and state business licensing department. You will probably need some type of business license to operate, especially in the food industry. You will also need a certificate for your business's name and a tax ID number. Also set up a business checking account, possibly with the bank providing your financing.

Select a location. Look for an area with a lot of foot traffic and try to avoid any places that already have existing fudge or candy stores nearby. Malls and strip malls might be good places to open a fudge shop. Also consider offering your products for sale online to increase revenue.

Determine which equipment you need to purchase. If you leased or bought a location that already has a commercial kitchen, you won't need as much as you might if you are converting it from a business that never served food. Look for used equipment at restaurant supply stores to save some money on start-up costs. Equipment needs could include a cash register, display case, stove and preparation area.

Advertise your new store in the local area with fliers, online advertising, radio jingles or newspaper ads. Emphasize your niche and what makes your fudge store special. Consider talking to nearby business owners to find out what methods work for them. Offer samples of your candy to entice customers to buy more. Perhaps work out a reciprocal deal with a local merchant. For example, if your fudge store is near a movie theater, you could offer $1-off coupons on movie tickets with every purchase, and the theater could do something similar, such a free piece of fudge with each ticket purchase.

Things Needed

Business plan

Financing

Business license

Tax ID number

Location

Equipment

Tip

Consider purchasing an existing business, or even a franchise, to take advantage of its established customer base and increase your likelihood of success.

Warning

Be realistic with your budget and realize it can take a long time for a new business to turn a profit. Some businesses never make a profit. According to Gaebler.com, the four-year survival rate for start-up businesses is less than 50 percent.